Hotels: Starwood’s grand return with 3+1 brands | Elounda Hills (by 1 Hotels) is coming

Hotel giant Starwood is making a strong comeback, marking one of the most exciting developments in the hospitality industry. Barry Sternlicht, CEO of SH Hotels & Resorts and founder of Starwood Capital, has revealed his intention to revive the Starwood Hotels brand, which was acquired by Marriott in 2016 for $13 billion. This revival marks not only the return of a historic name but also a strategic realignment in the global luxury hotel market.

A move with historic significance

Marriott’s acquisition of Starwood in 2016 resulted in the retention of individual brand names, such as W Hotels, St. Regis, Sheraton, Westin, and Le Méridien, but the withdrawal of the Starwood name from the spotlight. However, as it turns out today, Sternlicht made sure to keep the right to bring the brand back, which he announced in late January 2025.

The goal of the revival is to strengthen the growth of SH Hotels & Resorts’ three core brands—Baccarat Hotels, Treehouse Hotels, and 1 Hotels—which focus on different market segments. At the same time, there are indications that a new brand will be added to the Starwood family within 2025, responding to the demand for more lifestyle experiences.

Strategic brand extensions

SH Hotels & Resorts intends to take advantage of the return of the Starwood name to accelerate its international growth. Specifically:

Treehouse Hotels: Targeting a younger audience, Treehouse Hotels offers a combination of playful aesthetics and unique experiences. Two major arrivals are expected in 2025: Treehouse Manchester in the UK and a Treehouse Hotel in Silicon Valley, USA. Expansions are also planned in Adelaide, Miami, and Saudi Arabia (Diryah Gate).

1 Hotels: The chain that combines luxury and sustainability is planning expansions in Copenhagen, Paris, Melbourne, Tokyo, and San Miguel de Allende in Mexico. In Greece, the opening of a 1 Hotel in Crete - in Elounda Hills - is expected to strengthen the brand's presence in the Mediterranean. The hotel, as reported, is surrounded by the majestic hills of Elounda and the rugged coastline of Mirabello Bay.

Baccarat Hotels: Designed for lovers of absolute luxury, new Baccarat Hotels are under development in Dubai, Maldives, and Rome.

At the same time, Starwood is expected to take advantage of the opportunities offered by the dynamic tourism development in Saudi Arabia, participating in large projects with the support of the country's government.

Marriott's reaction

Although Starwood's move could be seen as a challenge for Marriott, the latter's management seems to be approaching the revival of the brand with a positive attitude. Marriott CEO Anthony Capuano said that the company was already aware of Sternlicht's intention to restore the Starwood name and that the two sides maintained a "transparent and collaborative" attitude during the process.

Marriott, however, continues its expansion at a rapid pace, setting a record in new luxury hotel development agreements in 2024. With more than 266 new hotels in the pipeline, Marriott maintains its momentum in the industry, strengthening brands such as W Hotels, St. Regis, Ritz-Carlton, and The Luxury Collection.

The Future of Starwood 2.0

Starwood’s re-emergence brings with it a fresh vision for hospitality. SH Hotels & Resorts CEO Raul Leal talks about a “new era” and hints that a new brand will be launched in 2025, targeting modern travelers seeking unique and personalized experiences.

Starwood 2.0 aims to differentiate itself from its competitors by focusing on customer experience, innovation, and luxury that is tailored to the needs of a new generation of travelers.

With the reintroduction of such a recognizable name, SH Hotels & Resorts is repositioning itself on the international hotel scene, creating a new dynamic player in the luxury hospitality market. Whether Starwood can repeat its past success remains to be seen in the coming years.

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